Nominal vs real rates for FCFE

CFA Level II Equities
#1

A bit confused when to use nominal interest rates and nominal growth and when to use real interest and growth rates in the FCFE

#2

You use nominal cost of equity for discounting nominal FCFE. You use real cost of equity to discount real FCFE.

#3

Thanks, but Q15 in Exam 2 morning session Schweser volume 1, where it does not state whether the cash flows are real or nominal. The only thing that is state, is a sentence stating " In the real rate analysis, General uses a modified build up model for calcualating required real return."

But I believe, this sentence is not enough to determine that the remaining cash flows are real.

#4

Is there an adjustment for inflation in the required return ?